second mortgages
Bysecond mortgages
Why are second mortgages considered "bad"?
We have to pay credit card debt. The interest rate is very much lower than credit cards, and the end of the second mortgage is 10 years. What's wrong with that? I wanted to add, I feel loan officer was not truthful when he explained that it was a "second mortgage." I feel he did this because it has negative connotations, but was not sure why. loan was 30K, 275K home value, with 180 due. I agree 100% on Zillow! Have home values up to 50% more than what they are selling in my area. I think it will take a couple of years for all the creases in his system worked.
Who told you that mortgages are second bad? If used correctly, are a great way to pay high interest debt. In addition, interest may be tax deductible. The only concern is whether the second and first mortgages' exceeds the value of your home. I'm talking about 125 loans%. You should visit Zillow.com and check the value of your home. Let's say is $ 100,000. If your first mortgage is $ 80,000 and his new second is $ 20,000 which will be a combined loan to value (CLTV) of 100% (80 +20 = 100.) This means you has used 100% of the value of your home. In the same scenario, if $ 30,000 would exceed the total value of your home with a 110% CLTV. Borrowed CAN THIS BE A PROBLEM OR IF YOU HAVE TO MOVE THE HOUSE, and to be more than the house is worth. If there is any chance you have to sell the house, in the coming years, do not take a loan where the CLTV exceeds the value of the home. If you have questions email me at freemortgageadvice@yahoo.com Anonymously. I am an executive of the mortgage is retired much free time. Do not make loans for the advice is impartial. Good luck ~ The Banker Renegade
second mortgages
What is a second mortgage and how can an owner and a bank or private investors benefit?
What would be the situation the owner of the use of a second mortgage. How the bank and the owner's profit thereof?
A second mortgage is the equity in your home to make an additional mortgage. Some call it a loan home, although technically slightly different. It is totally different from a refinancing. A second mortgage is usually an interest rate higher than a first mortgage and often has a shorter recovery period (eg 10 instead 30). Some use a second mortgage on a house purchase to avoid PMI. Sometimes a second mortgage is used to support a family financially afloat (unexpected bills, doctors for example). The bank's profits the same way they do any other interest payment on the loan. The owner benefits because a secured loan is generally a lower interest rate when money is needed.
Second Mortgages
